Instagram in the finance industry

Part
01
of three
Part
01

Instagram in the Finance Industry: Insights

Using Instagram as a customer service platform can lead customers into becoming a fraud victim because 85% of the young Brits have already revealed their banking details on Instagram.

USING INSTAGRAM AS CUSTOMER SERVICE? STATISTICS SHOW MOST YOUNG BRITS SHARED THEIR BANKING DETAILS ON INSTAGRAM WHICH CAN LEAD TO FRAUD

  • Eighty-five percent of young people in Britain shared their banking details on Instagram, using their information details which can lead to ID theft and fraud.
  • Six percent said they allow someone remote access to their bank account.
  • Data shows that 47% of scams in 2018 were people under 30 and 52% said that they are approached by scammers on social media such as Instagram.
  • Research found that 33% of under 25s have copied celebrity posts.
  • Young Brits, according to bank research stated that 87% shared their personal information on social media such as posting photos on their Instagram.
  • Ten percent of celebrities confessed they had shared the name of a pet on Instagram and also used it as a password. This can lead to fraud later as the bank research reported.

CUSTOMERS CAN USE INSTAGRAM TO FIND THEIR PREFERRED FINANCIAL ADVISERS AND USE IT AS A CUSTOMER SERVICE PLATFORM PERSONALLY

  • Instagram in UK has 14 million active users according to reports, with 64% under 30 and 46% have a household income of over £48,000 per year. Because of this, large financial brands build relationship with young people in their 20s, for example UBS.
  • Nucleus Financial Group stated that Instagram is fertile soil to attract clients for financial advisers.
  • Instagram can be used to attract clients because financial advisers can build community with the case of their clients and make posts that shows that the effectiveness of their financial advice.
  • Statistics show 60% of UK financial advisers use Instagram.
  • Many clients and prospects use social media as a source of information and a communication channel to get their clients more engaged with the financial advisers.
  • Twenty-eight percent of financial advisers use social media to get clients and 6% to 10% of prospects come from social media usage.

IF THE FINANCIAL BRAND HAS A CRISIS, CUSTOMERS USE INSTAGRAM TO HUNT DOWN THE BRAND WITH HARSH COMMENTS

  • Instagram is a customer service platform and customers use this to ask questions and make their feelings heard when problems occur, sometimes in a harsh way.
  • A recent issue is experienced by TSB Bank UK, when this online bank experienced a crisis breaking out on social media. There’s no way of knowing how the crisis will spread.
  • The more frustrated people get, the more they use Instagram as a tool to hunt down the financial brand because it has presence and comments.
  • Although TBS bank hadn't posted anything since March 2018, people still commented to old posts because of the fraud problem.
  • Majority of fraud claims across UK banking are from innocent victims who have been targeted by criminals and organized gangs. Because of this, TSB bank will refund fraud victims.
  • This started when the bank had major upgrade of its system and warned 1.9 million of its customers that some services such as online banking, making payments or transferring money, wouldn't be possible for several days and continued for six weeks.
  • Furious TSB users vented their anger at the bank, complaining everywhere on social media from Twitter to Instagram.


Research Strategy:

The research team scoured through news sites, business sites, financial sites from UK such as BBC, dailymail.co.uk and mirror.uk. We looked for insights on how/if customers are using Instagram as a customer service platform and were able to find relevant data to compose an answer.
Part
02
of three
Part
02

Instagram in the Finance Industry: Best Practices

Some of the best practices used in the financial industry to engage customers on Instagram include: Creating visually appealing content, increased customer engagement, frequent posting. Companies that have used these practices include American Express, Bank of America, Bank of Montreal, and Starbucks.

INSTAGRAM IN THE FINANCE INDUSTRY: BEST PRACTICES

  • According to a report from MyCustomer, what began as a fun way for brands to engage their audience has changed considerably over time. Instagram is now another channel for customers to contact brands when they need a quick response, or to publicly share their feelings vis-à-vis the brand.
  • Instagram is no longer an engagement and marketing tool. Instagram has become a public platform where customers can air their grievances. Brands on the platform can (arguably, must) respond to these issues.
  • According to Digiday, Instagram now features a contact button that allows customers to directly contact businesses/brands on the platform with their questions and concerns. Financial institutions have embraced this opportunity to communicate with their customers.

CREATE VISUALLY APPEALING CONTENT

  • According to a LyfeMarketing report, financial institutions should create visually appealing content on Instagram to ensure successful customer engagements. Social media users expect high-quality images from brands, and they expect these images to be both interesting and engaging.
  • The Financial Brand reported on research done by HubSpot that found visual content is over 40 times more likely to get shared on social media than any other type of content. This sharing of visual content would lead to increased customer engagement for the associated brand.
  • According to AhaMedia, American Express became more familiar and comfortable with its customers by sharing photos and more appealing content that people connect with.
  • The Deer Valley Credit Union provides inspirational and humorous posts, photos of credit union employees, and consolidates successful use of appealing visuals on Instagram.
  • The Finacial Brand notes that Bank of America does a good job with its Instagram visuals by giving priority to the visual content the platform demands. Also, Bank of America has tailor-made its content to suit the demands of its audience.

INCREASE NON-PRODUCT ENGAGEMENT

  • According to a report from Kasasa, financial institutions can easily involve their customers by showcasing regular events that promote solid engagement on Instagram. Financial institutions can do this by showcasing community activities, recent occurrences, and the latest news. This way, customers are always engaged and ask questions about the associated brands. Building more confidence and trust in the financial institutions in the process.
  • An article from Concured outlines how the Bank of Montreal engages its customers on Instagram by showcasing sponsored sports events, charity events, volunteer days, and other employee activities.
  • AhaMedia reports that Credit Sesame is not only being brand-focused but also shares a variety of content to keep its customers more engaged.
  • Morgan Stanley uses Instagram to share its overall role in the community and its impact on social responsibility through volunteering with its customers. In the process, Morgan Stanley has consolidated its core values and curated a positive company image.

FREQUENT POSTING

  • According to a report from Lyfemarketing, frequently posting is a vitally important best practice to ensure consistent interaction with customers. More posts encourage more interactions, while fewer posts result in fewer interactions. The potential impact of the latter is customer migration to competitors' pages in search of content.
  • According to a survey reported on by Newswhip, Forever 21 made about 1454 Instagram posts that attracted 119.5 million engagements.
  • In 2018, Starbucks's frequent posting on Instagram resulted in 57.8 million interactions, with an average interaction rate of 238,000 per post.

RESEARCH STRATEGY

We began our investigation with an inquiry into business news, business intelligence, and industry database sites (e.g., Newswhip, Concured Report, LyfeMarketing, Financial Brand, and AhaMedia among others). We were able to acquire all the requested information from these sources.
Part
03
of three
Part
03

Instagram Customer Service: Current Trends

Shoppable posts, Instagram In-app check out, shopping collection feature, and the use of stickers for engagement are some current trends for Instagram Customer Service in the UK.

SHOPPABLE POSTS

INSTAGRAM IN-APP CHECK OUT

  • With its new in-app check out feature, Instagram will now let customers buy products directly inside the app.
  • The in-app check out feature makes Instagram be like a digital mall and comes with an exceptional experience for the tech-savvy group of customers who are already accustomed to shopping through digital channels.
  • Instagram is creating better customer service by making it a lot simpler for customers to buy things they come across in their feed. They will ll be able to pay for that product inside the app instead of leaving Instagram to finish the transaction on a retailer’s website.
  • The trend has been driven by the current wave of the use of mobile payments and e-wallets for convenient check-outs.
  • It has also been driven by the emergence of the new digital-savvy group of shoppers on social media.

USE OF INTERACTIVE STICKERS FOR ENGAGEMENT

  • Brands that are seeking to sell their products have resorted to the engaging stickers to create a better experience for customers.
  • Some call-to-action GIF stickers encourage people to “swipe up,” and these stickers also help make product stories on Instagram look engaging and more fun for customers.
  • The trend has impacted on customer service by allowing users to engage with brands in a fun way and also with their followers and other Instagram users at large through Instagram stories.
  • The trend is driven by the need for brands to create a more engaging atmosphere for customers and followers, in a manner that influences them to purchase their products.
  • Also, the modern-day shopper enjoys experiential shopping in which he/she derives much more value and additional benefits in the process.

SHOPPING COLLECTION FEATURE

  • Through the shopping collection feature, individuals on Instagram who come across items they are interested in from their feeds or stories can now save it to their shopping collection.
  • Users can do so by tapping on the product tag and then on the 'save' icon.
  • The new feature has improved customer service, allowing customers to have a fast way of making a wish list and storing gift ideas in preparation for events or holidays.
  • The trend has been driven by the continuous demand for more features that are convenient.

RESEARCH STRATEGY

To find the current customer trends on Instagram's customer service, we began by reviewing industry publications, such as WIRED, expert blogs, such as Hoot Suite, press articles by Instagram (Instagram Press and Business Instagram), and media outlets, such as Fox News. We cross-referenced sources and compared the pre-listed trends and only picked 'current trends' as those that were fronted by experts in the field and those reported by Instagram. We also focused on trends that have come up since 2018.

A thorough search through the above sources did not yield any trends that are specific to the UK. As such, we broadened our search to include a more global outlook to the trends but with interest on those that could apply to the country. We have compiled a list of global trends as a proxy for the required current trends in Instagram customer service in the United Kingdom,
Sources
Sources

From Part 01
Quotes
  • "A massive 85 per cent have shared details on Instagram that could leave them open to ID theft, and a shocking six per cent say they would allow someone remote access to their bank account. A further four in ten also say they would provide personal and security detail to somebody phoning up claiming to be from their bank."
Quotes
  • "Instagram, which is owned by Facebook, reported itself that users under 25 are spending more than 32 minutes on the app every day on average. Small wonder, then, that several large financial brands with aspirations to build relationships with twentysomethings have realised this is fertile soil. UBS provides a good recent example."
Quotes
  • "The recent issues experienced by TSB have seen the bank dealing with the fallout on Twitter, Facebook and Instagram. While the bank hadn’t posted anything on Instagram since March, that didn’t stop people from commenting on old posts."
From Part 02
Quotes
  • "Instagram has rolled out a “contact” button for businesses, letting customers reach out with their queries directly on the platform. Several brands — including Nordstrom, Benefit, Delta and Denny’s — have already jumped on board. Customers with a question can tap the button, after which they are prompted to call, text or email the brand."
Quotes
  • "HubSpot found that visual content is more than 40 times more likely to get shared on social media than other types of content. Tweets with images get 18% more clicks, 89% more favorites and 150% more retweets, according to Buffer. Bank of America does a good job with visuals on Instagram, says Narayan, describing the bank’s Instagram strategy as “pretty bold.”"
Quotes
  • "Here, there’s a huge volume of posting every month from each of the pages. Forever 21 posted the most out of this group of brands, with 1,454 posts, which attracted 119.5 million engagements, the highest of the five accounts analysed. Just over one third (329) were videos."
Quotes
  • "We want our Instagram presence to give our followers insight into Morgan Stanley’s community, culture and impact,” said Alison Garrett, executive director of digital strategy at Morgan Stanley. “We use Instagram to give people a peek into our offices and events around the globe. We share images of our employees exemplifying Morgan Stanley values, volunteering in their communities or leading with ideas at technology or leadership events.”"